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Disney announces Q2 results: Streaming hits profit milestone

The Walt Disney Company reported their earnings for its second quarter ended March 30, 2024 on Tuesday. Revenues for the quarter increased to $22.1 billion from $21.8 billion in the prior-year quarter.

Diluted earnings per share (EPS) was a loss of $0.01 for the current quarter compared to income of $0.69 in the prior-year quarter. Diluted EPS decreased to a nominal loss due to goodwill impairments in the quarter, partially offset by higher operating income at entertainment and experiences.

“In the second fiscal quarter of 2024, we achieved strong double digit percentage growth in adjusted EPS, and met or exceeded our financial guidance for the quarter. As a result of outperformance in the second quarter, our new full year adjusted EPS growth target is now 25 percent. We remain on track to generate approximately $14 billion of cash provided by operations and over $8 billion of free cash flow this fiscal year,” said a press statement released by the company on May 7.

The company also repurchased $1 billion worth of shares in the second quarter and looks forward to continuing to return capital to shareholders.

The Entertainment Direct-to-Consumer business was profitable in the second quarter.

“While we are expecting softer Entertainment DTC results in Q3 to be driven by Disney+ Hotstar, we continue to expect our combined streaming businesses to be profitable in the fourth quarter, and to be a meaningful future growth driver for the company, with further improvements in profitability in fiscal 2025,” the statement added.

Disney+ Core subscribers increased by more than 6 million in the second quarter, and Disney+ Core ARPU increased sequentially by 44 cents.

Sports operating income declined slightly versus the prior year, reflecting the timing impact of College Football Playoff games at ESPN, offset by improved results at Star India.

The Experiences business was also a growth driver in the second quarter, with revenue growth of 10 percent, segment operating income growth of 12 percent, and margin expansion of 60 basis points versus the prior year.

“Our strong performance in Q2, with adjusted EPS up 30 percent compared to the prior year, demonstrates we are delivering on our strategic priorities and building for the future,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company.

“Our results were driven in large part by our Experiences segment as well as our streaming business. Importantly, entertainment streaming was profitable for the quarter, and we remain on track to achieve profitability in our combined streaming businesses in Q4,” he added.

“Looking at our company as a whole, it’s clear that the turnaround and growth initiatives we set in motion last year have continued to yield positive results. We have a number of highly anticipated theatrical releases arriving over the next few months; our television shows are resonating with audiences and critics alike; ESPN continues to break ratings records as we further its evolution into the preeminent digital sports platform; and we are turbocharging growth in our Experiences business with a number of near- and long-term strategic investments,” Iger said. StoryBoard18

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